Contract Administration

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Western Sydney University *

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3010

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Law

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Apr 3, 2024

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docx

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Contract Administration ASSESSMENT TASK 2: PROFESSIONAL TASK Abdallah Farhan SN:20716657 INTRODUCTION Illy construction is a medium-scale developer in Australia they have hired a contractor to complete the works. Halfway through the construction project, the contractor realizes that there are defects in the beam sizes. The contractor informed the superintendent, and the superintendent issued a new structural drawing with the correct beam sizes. This report introduces the importance of contract law it includes a progress claim referring to AS4000- 1997 and the clauses relating to AS4000-1997. The contractor was guided to carry out time extension claims and the loss of exudated damages to Illy construction. TASK 1- GENERAL PRINCIPLES OF CONTRACT LAW A contract is formed between two parties to enforce rights and obligations by law. A contract is generally made-up on elements the elements, include offer, acceptance, and consideration. The contract rights and obligations are to be offer made and two parties to agree on the contract and there must be considerations between the two or more parties A standard form contract includes one party who is in charge of the contract and the terms and condition whereas the other party has no input in the terms and conditions of the contract. Bills and quantities are always used in a construction contract it’s built up on the tenderers by or on behalf of the principal which is stating work to be carried out. A contract includes offer it must be bonded in a contract it’s an example of when a priced tender is sent to the client/principal, and it must be agreed on between both parties. A standard form contract usually has a lawyer on retainer it means when a client pays a lawyer a small a lawyer a small amount and the lawyer is issued to perform a legal service whenever you ask them to it is always recommended to be put in a standard form contract so if any issue occur it is handled by a legal team and handled between the rights and obligations of the contract and the law. A standard form contract is used across Australia it has been made easy to use and it removes issue between both parties and makes it easier to form a contract without any issues. It is mainly used in commercial buildings and private sector buildings. A contract clause is issued in a stand form contract it is used to clearly define the rights and privileges between two parties it could be found in various parts of a contract. There are important clauses in the contract this includes liquidated damages the indemnities and the consequential loss of a project.

TASK 2- DRAFT PROGRESS CLAIM DATE: Monday, June 25, 2017 CLIENT: Illy Construction ABN: 90 235 125 335 PROJECT: Four-Storey Building Tax Invoice Number: 59902 Contract Value $32,000,000,00 Reinforcement Vary – No Retention $32,590,80 $- Variations Contract works completed to date $118,000,00 Reinforcement Vary Completed to date $33,580,90 Variations completed to date $- Gross amount payable $150,670,80 Less retention to contract works (10% to max 5% of contact value) $- Next payable $150,670,80 Less previously certified $- Progress claim amount $150,670,80 GST -10% $14,020,18 Total Payable $164,690,98 PAYMENENT TERMS: 14 days Make pay to Abdul Constructions Pty Ltd Box: 333 Guildford Rd NSW 2199 BSB:123 456

Account 1244 9890 A draft progress claim is a form that is submitted when work is about to commence it includes payments it’s typically an agreed schedule and it’s provided near the completion of the project. It includes the contract value, the reinforced vary the contract works completed during the time of the project and must include the project details like for example the company names the BSB number, and the account number this is because the payment can be sent to the builder. In clause 37 and item 28 in AS 4000, it states the contractor shall claim payment progressively in accordance it also states an early progress claim shall be deemed to have been made on the date, this means if payment is provided it shall be provided in the progress claim and must be provided in every document and shall be given in writing to the superintendent. The progress claim above it includes all details of the payment like how much payment is provided and much is still due it also includes the variations in the gross amount payable. The draft progress claim should always be in detail so that if any issues occur it is documented for evidence in the future. It could also include an advance payment an advance payment is a payment that is paid in advance of the completion of the project it also includes the labour, materials, and vehicles used during the project. In the progress claims there are preliminaries this is the example of items that are necessary to complete the works but will not become part of the works like for example the water and the scaffolding. In a lump sum contract, the amount of work done is calculated on how much work is done during the project. This is an advantage because the amount of time the contractor is spending to prepare the progress claim is minimized and it makes it easier.

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